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Union Budget 2019: Expectations from Indian Organizations including Startups

New Delhi, India, July 03, 2019- India's much awaited Union Budget for the fiscal year 2019-20 will be presented by the Finance Minister Nirmala Sitharaman on July 05, 2019. This budget is expected to lay focus on start-up eco-system in the country and announce various incentives for the next few years.

Here are some of the organizations in India including start-ups with their expectations from this year's budget (Fiscal 2019-20)

Parimal Shah, President International Operations, MK Jokai Group:  "The GDP growth for the last quarter of the fiscal year 2018-2019 was estimated at 5.8%, which is the lowest it has been in the last five financial years. While the increasing of exemption for angel tax to Rs 25 crore capital in the Interim Budget earlier this year was a welcome move, we expect an angel tax holiday in this budget. This is important considering that a lot of the disruptive innovations and job creation comes from the startup ecosystem, which is the need of the hour since unemployment is at a four-decade high of 6.1%. We also want the government to provide higher tax exemptions for small businesses, ease the regulatory norms and come up with a single window clearance to ease the compliance process which will encourage entrepreneurship and promote India as a start-up hub in alignment with the Startup India initiative by the Government of India"

Nishcal Chaudhary, Founder & CEO, BattRE: "We are expecting the government to give a relook at the EV policy and recently announced FAME 2. Electric mobility needs lucrative and long-term policy support to incentivise demand on the consumer side and to foster a manufacturing ecosystem to fulfill the increased demand.

Current local consumption is too small to be competitive on pricing, we need a focussed programme to build scale which will help in matching pricing and quality of local components' manufacturing vis-a-vis China."

Kumar Abhishek, CEO & Co-founder, ToneTag: "Among various agendas, Prime Minister Narendra Modi has taken steps to promote young entrepreneurs in the country. The startup ecosystem is eyeing the Union Budget 2019, as the government is slowly recognizing the potential of startups and framing policies that create a favorable environment for them. While the Startup India Scheme has definitely provided multiple benefits to startups in the form of easy license clearance, tax cuts, and minimum regulatory interference, there is still scope for many more reformative policies which will further ease out the journeys of start-ups."  

Alok Mittal, CEO & Co-founder, Indifi Technologies: "Credit inclusion for MSMEs is a critical imperative to enable growth and job creation in India. We expect the upcoming budget to define concrete steps to mobilize access to financial services and empower the fintech companies that facilitate them. For instance, facilitating access to wholesale capital, and extending credit guarantee schemes such as MUDRA can help in bolstering the impact and reach of these initiatives. Similarly, opening up API based access to data within government and banking domains can help expand the reach of digital credit."

Dilip Modi, Founder and Chairman, DiGiSPICE: There is great anticipation around the presentation of Union Budget 2019. After a consecutive majority mandate received by the BJP and this being new Finance Minister Nirmala Sitharaman’s maiden budget, market stakeholders are following the proceedings with keen anticipation. Also, the strength of its electoral mandate enables the government to initiate long-term transformational projects. Technology will play a great part in this transformation and already we can see various projects under the National e-governance plan taking shape across states. Maharashtra has set an example of optimized digital adoption and we can see the central government and many other states adopting AI, machine learning and data analytics to bolster public service framework.

Dedicated ‘Special Digital Zones’ like SEZs, operational subsidies, reducing import duties on essential hardware and components, guidelines to safeguard Intellectual Property and development of institutions to aid in upskilling are areas that will continue to receive focused attention. Incentives can be expected to promote greater adoption of digital solutions in the SME and MSME sector. As india emerges as a service-sector driven economy for the long run, digital infrastructural investment, both for enterprises and for the nation, will become essential. The Union Budget 2019 will feature decisions that go a long way in optimizing the transparency and judicious utilization of resources. There is a great opportunity for us to use Aadhar as an authentication platform to drive financial inclusion across semi urban and rural India.

Ankur Choudhary, Co-Founder and CIO, Goalwise: “The Modi government’s first budget was a major hit among the salaried class, and rightly so. It had increased the investment limit under Section 80C. Since it has been 5 years since then, we expect the government to revise the Section 80C upwards from 1.5 lakhs to at least 2 lakhs given the inflation. While the corporate tax rate was lowered for MSMEs last year, we are now expecting the same for businesses of all sizes. On the personal finance front, the government should consider widening of tax slabs as per CII recommendations, i.e. no tax up to 5 lakhs (not just a rebate but a revision of tax slabs), 10% between 5 to 10 lakhs, 20% for 10-20 lakhs and 30% beyond 20 lakhs.

Moreover, LTCG is currently applicable on Equity MFs, but ULIPs continue to be tax-free. We want parity between ULIPs and Mutual Funds in terms of taxation. Additionally, removal of SST (Securities Transaction Tax) and simplification of GST slabs should be the top priorities of the Modi government 2.0.”

Ankush Aggarwal, Founder, Avail Finance: "Avail Finance provides credit to borrowers in a space where a substantial credit gap exists by providing adequate and timely loans. The government needs to create a strong regulatory body for the non-banking financial sector to address problems like the liquidity crunch in the sector while boosting the confidence of lenders and borrowers. This will ultimately lead to easier credit for the poor and needy, in-line with the government's plans for financial inclusion. In addition, we are also hoping to see some incentives for startups and an overall reduction in corporate tax."

Arjit Soni, Founder, MYBYK: "I am hopeful government will increase expenditure on Urban Public Transport significantly in the budget. Cities need more modern buses if they want to encourage people to shift from private to public transport. Further, we expect government to waive off GST on cycles (for bike share). On one hand government is subsidising electric vehicles and on the other it's taxing cycles which are already environment friendly. Bike share has a huge tax disadvantage over the informal transport which doesn't pay anything and this tax break would help us become more competitive"

Rajan Sharma, Founder & Chief Executive Officer, “Although e-commerce in India is still in its growth stage and the market will evolve in its own unique way, the same holds true for the regulatory requirements as well. As one of India’s leading e-commerce companies in the B2B domain, we hope that the Union Budget will address issues specific to e-tailing. Presently heavy online discounting, predatory pricing, preferential treatment to select sellers or monopolizing of the market is rampant and unchecked. This is creating an imbalance across the whole partner and fulfilment ecosystem affecting both online and offline B2B businesses. Since we serve both sides of the B2B space, we understand there is an urgent need to address the aforementioned concerns. As a platform that is neutral to both sellers and buyers, we feel confident and hope that the Government will make changes in the policy framework to help e-commerce grow organically based on positive, genuine parameters and not on a discount driven model which eventually will hurt the overall ecosystem,”


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